Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Excellent Result For BNZ

9 November 2007
Media release – for immediate release

Sound asset quality and a strong strategic agenda drive an excellent result
for Bank of New Zealand

Bank of New Zealand delivered a strong financial performance with underlying cash earnings of $605 million, an increase of 15 per cent year-on-year.*

Highlights for 2007 include:

• Bank of New Zealand headline profit of $683 million
• Strong performance across all business units
• Bank-wide net interest margin 2.39 per cent, down 6 basis points over 12 months
• Bank cost to income ratio at 44.1 per cent, down 3.5 per cent
• Continued commitment to Corporate Social Responsibility

Bank of New Zealand’s two main operating divisions are:
• NZ Banking including Retail, Agri and Business banking; and
• Corporate and Institutional Banking.

Both divisions have had an excellent year.

NZ Banking

• NZ Banking posted strong underlying pre-tax cash earnings*, up 16 per cent year-on-year, driven by disciplined cost management and profitable volume growth, with lending volumes up 12 per cent and deposits up 9 per cent.
• A competitive marketplace has seen net interest margin contract 12 basis points to 2.45 per cent.
• A disciplined focus on simplification and continuous improvement of processes throughout the business has driven significant sustainable cost benefits.

• Agribusiness has streamlined operations to provide better client service and has increased market share to a 2007 high of 18.3 per cent. The launch of AgriCapital offers customers new capital solutions including debt and equity, as well as tailored products for capital intensive sectors and large scale projects.

• Business banking saw continued growth in the more sophisticated lending product areas of Asset Finance, Debtor Finance, Property Finance and Leveraged Finance. An experienced team continue to deliver excellent client service and a tailored approach to managing customer needs. A strategic focus on SME’s has driven strong results.

CEO Cameron Clyne said, “Bank of New Zealand operates off a solid financial base, offering a AA Standard & Poor’s rating and with a focus on maintaining sound asset quality.

“The benefits of our size and global reach, and a quality asset base, are evident in the current market. We will continue to focus on a strategy of profitable volume growth. We won’t be chasing market share at any cost”.

• Product innovation, higher staff engagement and the simplification of processes has resulted in record high customer satisfaction scores.
• BNZ Customer Contact Centre has won the ‘Top Call Centre in NZ’ Award for the 4th year running.
• BNZ scooped an Effies Award for advertising effectiveness with the campaign driving the highest awareness ratings in over ten years.
• Continued commitment to Corporate Social Responsibility principles saw the introduction of 2 days volunteer leave per annum for staff, and a successful Get Organised Event for Preventing Violence in the Home. The new building at 80 Queen Street has been awarded one of New Zealand’s first 5 Star Green ratings, the result of combined efforts between developer Multiplex and the BNZ.
• The launch of the BNZ Customer Careline, an early intervention device for customers experiencing financial stress, has underpinned the Bank’s responsible lending platform.
• A strategy for attracting and retaining talent saw the launch of several initiatives including MyWellbeing, a national programme of free health checks, followed by a roll out of online interactive health programmes, and workshops across the country.
• Bank of New Zealand continues to develop the leadership potential of all managers, with more than 450 completing customised leadership training during the year, up from 274 the year before.

Corporate and Institutional Banking

• The BNZ Corporate and Institutional Banking team posted a very strong result with pre-tax underlying cash earnings* up 30 per cent year-on-year with revenues up 21 per cent to $265 million.
• The result was underpinned by an excellent performance from the Markets division and the continuing success of the rapidly expanding Corporate Finance team.

Anthony Grayson, General Manager of Corporate and Institutional Banking said, “Through our connection with nabCapital’s global business we have been able to deliver competitive client solutions including new Corporate Finance products we have not previously offered our clients locally.

“Our experienced personnel in Markets have also been able to generate increased revenues via excellent client service, research and trading especially on the back of recent volatility. This team approach together with an improved product and risk approval process has driven greater “speed to market” solutions for our clients.”

Note : * underlying cash earnings exclude discontinued operations and IFRS fair value adjustments


© Scoop Media

Business Headlines | Sci-Tech Headlines


Fuel Leak: Refinery Prepares To Repair Damaged Pipeline

Refining NZ has confirmed that it is to start repairs on a section of its multi-product fuel pipeline which was shut down following a jet fuel leak last Thursday. More>>uption.htm">More>>


StatsNZ: Economy Grows 0.8% In June Quarter

“Strong export and domestic demand underpinned growth this quarter,” national accounts senior manager Gary Dunnet said. “Demand for exports has resulted in strong production growth in manufacturing and service industries.” More>>


Expert Reaction: Cassini's Grand Saturn Finale

After a 20 year mission, NASA's spacecraft Cassini will meet its demise this week by plunging into Saturn's atmosphere and burning up. More>>


Jurisdiction: Court Rejects Cathay Unit's Retirement Age Of 55 For Pilots

The Supreme Court has backed two Auckland-based Cathay Pacific pilots who claimed local law meant they couldn't be forced to retire at 55. More>>


Supreme Court: AFFCO Loses Lockout Appeal

The essential question in the appeal was whether those who presented themselves for work at the beginning of the 2015/2016 season were at that time “employees” for the purposes of the lockout provision... This Court has unanimously dismissed the appeal. More>>

China FTA: NZ Govt Agrees On Negotiating Mandate For Upgrade

The New Zealand government has agreed a negotiating mandate for the upgrade of the free trade agreement with China, with a goal of $30 billion of two-way trade by 2020. More>>